Economic feasibility of implementing hybrid oil palm in the region of Moju–PA

Resumo

The objective of the present study was to analyze the economic feasibility of implementing interspecific hybrid oil palm (OxG) with assisted pollination on a 50-hectare property in the municipality of Moju–PA, Brazil. The study was divided into six stages. The first stage defined the project scope, followed by the second stage, in which project-related expenditures (cash outflows) were identified. In the third stage, revenues (cash inflows) were estimated. After identifying cash inflows and outflows, the fourth stage consisted of preparing the cash flow statement. In the fifth stage, the economic feasibility indicators were calculated for three distinct scenarios. Finally, in the sixth stage, the conclusions of the economic feasibility study were presented. The results of the study provide estimated values for expenditures (cash outflows), revenues (cash inflows), and the complete cash flow over a 30-year period (crop development cycle). In addition, the feasibility indicators were presented for each projected scenario. The oil palm implementation project in the region of Moju–PA was analyzed under three distinct economic scenarios (optimistic, intermediate, and pessimistic) proving to be feasible in the first two and unfeasible in the latter. The lack of historical data related to the crop, in order to better understand its market and production volatility, was identified as the main limitation of the study, making it difficult to develop more robust projections.